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Open Innovation 2.0 – creating ecosystems!
- European response
Adviser, Innovation Systems, European Commission
Contents
• VUCA?
• OI2?
• Drivers
• How does the paradigms change?
• How to respond to the challenges?
The Future
• Prediction is difficult,
Especially about the future
• Niels Bohr
• The best way to predict the future is to invent it!
• Alan Kay
3
VUCATIONAL society
• Volatile
• Uncertain
• Complex
• Ambigious
Innovation?
• Make things happen!
Sustainable innovation is full of disruptions! Science based linear innovation is NOT mainstream anymore! HOW TO CREATE NEW???
• User-centric innovation • Open innovation • Systemic innovation • Experimental mash-up
Essential drivers
• connectivity
• open
• interaction
• “organic”
• NON-controllable, only catalyzing possible
Open Innovation 2.0:
A New Renaissance IF NOT……
Diversity matters (MIT 2002)!
•
High low
Low
high
Va
lue
of
inn
ova
tio
n
Breakthrough
average
insignificant
Alignment of team members’ disciplines
Talent attracts talent!
Value Chain
collaboration process
Value Network
Dynamic Value
Constellation
mediation Value Chain
process
Value Network
New Business Structures
Maslow 2.0 for organisations
Still linear innovation model!
Testbed FDinland(FI)
SURFnet/
Kennisnet
project: pilot
schools (NL)
Silicon
Hill (FI)
Kenniswijk (NL)
Octopus
(FI)
Digital
Playgrounds
(NL)
Degree of participation: LOW (Observation) VS. HIGH (Observation +
Creation)
Knowledge Focus: Single and controlled contexts VS. Multiple & Emerging
contexts
Test and Experimentation Platforms
Sources of idea generation split into external
and internal knowledge
Source: Straub, 2006a
M
M
M
Customers
M=Management response of a given task in a given time point is given to the competence
node which understands the customers problem best
Group of competencies needed to
perform a task
Competence nodes networking (IMS, 1996)
••• 16
Innovating together!
Open
Innovation Citizens
and users
Application
Environments
Technology and
Infrastructure
Organisation
and methods
Expertise
Creative Commons; tools, IPR, practise, experience
Innovation moving out of the Lab
Centralized inward looking innovation
Closed Innovation
Ecosystem centric, cross-organizational innovation
Innovation Networks
Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005
Externally focused, collaborative innovation Open Innovation
Creating Innovation Platforms
Engagement platforms
“Assemblages of persons, interfaces, processes, and artifacts, purposefully designed to intensify engagements to co-create
value”
from Prof V Ramaswami
High expectation jobs count for 80% of new job creation
But:
High expectation……. ……the “Unexpected”
Pathfinders
and/or
Path Creators ?
PATHFINDER – the “knowledgist”
Knowledge maps
Measurement Optimization Path
Specialization Path
Neutralization Path Silos
Horizon of
certainty
Disobedience (“Ignorance is bold and knowledge reserved”, Thucydides
“Future knowledge is not possible in the present”, Karl Popper )
Uncertainty
Inaccuracy
Horizon of
doubt
Imagination
(“Knowledge circumscribes the imagination”, Giacomo Leopardi, Notebooks)
A range of
disciplines
PATH CREATOR – the “resilient persona”
Search for adjacent ideas
“one door leading to
another door”
Innovation is a “body sport”
A
B
C
“I am going to use my idea in my field of use, and you are welcome to use it in your own field”
Bridger as new profession
Extraordinary: Large Deviations Make the Difference In experiments events supposed not happening, happen
“normal” is not
the focus
“extremes” are
the focus “extremes” are
the focus
Feedback loops
Cumulative, snowballs, arbitrary
and unpredictable effects
You don’t tame uncertainty
looking at extraordinary
events
We reward
acts of
prevention
rather than
treatment
Discovery of valuable ideas by crowds!
Number
crowd experts
Value
Area of interest Old space
New space
Curators and Bridgers as new skills
New innovation space
• New professions: Curators and Bridgers
• New types of ecosystems:
• Self directed
• Real world prototyping and experimentation
• Common interest
• Open platforms
• Recognition beyond ordinary means
• Brings fast scale-ups
• Flagships (?)
time
value Transition speeding + disruption+ risk mgmt
Experimentation in real world Multidisciplinary Co-creation of new marketplace
Create incentives to encourage Openness to Innovation and Experimentation
• We solve too many problems with taxes and penalties, create incentives to encourage experimentation and prototyping, not "perfect planning for yesterday".
• Promote Successful innovators and entrepreneurs as Hero’s
• Change our European culture where honourable failure is seen as a badge of honour :"failing fast, but small"
Drive Intersectional Innovation
• The breakthroughs happen at the boundaries of culture, domains, nations and technologies
• Prioritize support for innovation which target intersectional, disruptive and architectural innovation
• Create a de Medici effect to enable a new European Innovation renaissance
Horizon 2020
• Commission proposal for a 80 \billion euro research and innovation funding programme (2014-20)
• Part of proposals for next EU budget, complementing Structural Funds, education, etc.
• A core part of Europe 2020, Innovation Union & European Research Area: • Responding to the economic crisis to invest in future jobs and growth • Addressing peoples’ concerns about their livelihoods, safety and
environment. • Strengthening the EU’s global position in research, innovation and
technology
• Three main focus areas: Industrial leadership (LEIT), Socieoeconomic challenges and Research Excellence
Accelerate the Innovation Union by the following 10 actions
• Action No 1: Develop a new business model for the European Union
• Action No 2: Design for a new end state – Sustainable Intelligent Living
• Action No 3 Create an European Innovation Ecosystem (EIE) having European Research Area as one important part of it
• Action No 4 Focusing on evidence based innovation strategy, execution and funding in the EU actions
• Action No 5: Create a European Innovation System and Capability (what, how, when)
• Action No 6: Prioritize Quadruple Helix Innovation
• Action No 7: Focus on Innovation Adoption
• Action No 8: Create incentives to encourage Openness to Innovation and Experimentation
• Action No 9: Stimulate High Expectation Entrepreneurship and social entrepreneurship
• Action No 10: Drive Intersectional Innovation
Dublin Declaration – Open Innovation 2.0 May 20 & 21 2013 Mission: Develop a widespread innovation literacy in Europe Vision: Open Innovation 2.0 – The next new Official Language of the European Union Initiative by OISPG, Open Innovation Strategy and Policy Group, chair Martin Curley, INTEL
Paradigm change is REAL!
• Closed innovation Open innovation Open innovation 2.0
• Dependency Indepencency Interdependency
• Subcontracting Cross-licensing Cross-fertilisation
• Solo Cluster Ecosystem
• Linear Linear, leaking Mash-up
• Linear subcontracts Triple Helix Quadruple Helix
• Planning Validation, pilots Experimentation
• Control Management Orchestration
• Win-lose game Win-win game Win more-Win more
• Box thinking Out of the Box No Boxes!
• Single entity Single Discipline Interdisciplinary
• Value chain Value network Value constellation
Conclusions
• The paradigm shift to Open Innovation 2.0 is real
• Essential to find positive collisions to create new markets
• Clusters are not enough to create new; ecosystems needed!
• Experimentation and prototyping in real world settings especially important in areas close to societal changes and challenge
• Experience from first calls: Too little emphasis on impact
More information
www.ec.europa.eu/research/horizon2020
http://ec.europa.eu/digital-agenda
http://ec.europa.eu/digital-agenda/en/open-innovation